Auditing is responsible for:
A) litigation support and redemption.
B) risk assessment and internal controls.
C) risk assessment and calculation of damages.
D) business valuation and risk assessment.

Question

Quizplus · Accepted Answer

Auditing is responsible for risk assessment and internal controls. This involves evaluating the risks associated with an organization's operations and assessing the effectiveness of their internal controls in mitigating those risks. Answer A is incorrect because litigation support and redemption are not typical responsibilities of auditors. Answer C is incorrect because the calculation of damages is typically done by forensic accountants or other financial specialists, not auditors. Answer D is incorrect because business valuation is typically outside of the scope of an audit, although auditors may review valuation estimates provided by management.

Auditing Is Responsible For